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When Occupy Apple Pie is Bigger than SOTU
By: Kenneth Polcari, Expert Contributor
Ok - so first the good news! AAPL absolutely blows the roof off the house. As usual, anything Apple is in great demand. Numbers were "Herculean".
Profits more than doubled - phenomenal in fact - earning surged 118% thanks to Iphone 4S, Ipad, Macbook...Ipod...do I need to go on? Stock is UP 7% in premkt trading...$452...jump on!
Guidance says that 2012 is going to be a MONSTER year as new products releases will replace the older versions, and the mania continues. Tim Cook, CEO uses words like "breathtaking" while admitting that they can NOT keep up with global demand.
Back to reality. So, did you see the State of the Union (#SOTU) speech? Thoughts? How's that working for you? It's campaign 2012 in all its glory.
Obama envisions an America "Where everyone gets a fair shot..." Did I miss something? Once again - he lays out a vague plan: wants the wealthy to play by the same rules. Ok - I hear you, but guess what Mr. President - the wealthy PLAY by the rules in the book - the playbook that Congress/Lobbyists/Legislators (you included) created. The wealthy are NOT doing anything illegal so stop pandering and say it for what it is.
If you want to make it fair - then you have to throw out the tax code and start from scratch: Throw out the lobbyists and special interests and do something dramatic - LEAD the country. Do not make it sound as if one segment of the country is behaving illegally. They are not and Mitt Romney has to stand up and set the record straight.
Speaking of behaving illegally - did he say last night that he wants to BAN INSIDER TRADING for members of Congress? What a novel idea...
By definition - Insider Trading means - the buying or selling of stock or other securities by individuals with access to non-public information about a company obtained during the performance of the insiders duties breaching a fiduciary relationship of trust & confidence. Do I need to go on? I could, you know...but back to the mkts.
FOMC began the 2 day meeting yesterday, and with little guidance - stocks once again hung in the balance as the European discussions continue. It seems that the 50% haircut negotiated last October is not enough.
Really?
70% seems to be the new number but that's not working as the private investors are not willing to go there. Help me out - when you invest - there is this thing called Risk/Reward - right? Investing is risky; the players know that - so guess what? Cut the BS!! It won't be pretty but it is the way of the world. Everyone wants to be protected while at the same time they want to make a killing.
You cannot have it both ways. Either you invest and assume the position or you put your money in treasuries. If there is not risk then there should not be a reward. It is investing 101. The only question is - how orderly or disorderly will it be?
Today we will hear from the FED a couple of times - at 12:30 we get the rate decision - then around 2 ish we get Uncle Benny to answer a few questions and then around 4 we will get an interest rate forecast.
The Fed has already stated that interest rates will be kept low for an extended duration, so what are we looking for? Can you say QE3? The hunt is on. The text will instantly be scanned for any hint of stimulus in any of the multiple forms it might take and when Benny is interviewed you can be sure that the reporters will be lined up to ask about QE3 - not once or twice - but over and over again.
Just trying to hear if he slips...What form will it take? Because institutional traders have been waiting (patiently) on some direction about a QE3-type program, stocks will likely move lower IF Uncle Benny says nothing.
On the other hand, if he is concerned about the pace of the recovery and leaves open the door for additional stimulus, then stocks will find their footing and begin the trek forward.
Today we get a slew of eco reports - Mort Apps, Pending Home sales and the FED decision along with a monster day of earnings.
In Asia - most mkts continue to be closed for the holiday: Japan +1.2% and ASX +1.1%. Apple earnings are good news for the Asian economies, but with most mkts closed it is hard to get an honest read.
In Europe - mkts all lower right now as a batch of disappointing earnings and rising bond yields in some of the peripheral countries put pressure on the mkts. Declines in financials - mostly French and UK banks are leading mkts into negative territory. FTSE -0.6%, DAX -0.6%, CAC 40 -1%, Eurostoxx -1.1%.
Futures on the S&P are now lower by 4 pts, trending at 1307. We remain in purgatory - not knowing which way to go, 1325 remains resistance - while 1300 seems to be support - as we bounced off of it yesterday and held.
Expect the mkt to reward or punish individual companies as they report while all eyes remain focused on Benny...will he disappoint?
Take good care -
KP
In honor of Apple - we are making Apple Fritters today.....You can eat these for breakfast or have them as a desert....either way - It's all about Apples!
For a dish like this you need measurements as you are creating a batter to dip the apples in...so this one is more specific.....1 c flour, 1/4 c sugar, 1 tbsp baking powder, 1 tsp salt, 2 eggs, 1/2 c milk, oil , 2 or 3 apples (peeled, cored and sliced in rings) and confectionary sugar.....You can also add in cinnamon or nutmeg if you like...
Mix together the dry ingredients, in another bowl beat the eggs and add the milk - now blend with the dry ingredients.
In a deep fryer - heat some oil - enough that will allow you to "deep fry" the slices.
Dip the apple slices in the batter and then deep fry until golden brown. Remove and place on paper towels to drain - when cooled - "dust" with confectionary sugar. Arrange on a platter and serve. If you use as a desert - place the fritter on the plate and top with your favorite ice cream. I am traditional - so Vanilla always works best.
Enjoy
Guidance says that 2012 is going to be a MONSTER year as new products releases will replace the older versions, and the mania continues. Tim Cook, CEO uses words like "breathtaking" while admitting that they can NOT keep up with global demand.
Back to reality. So, did you see the State of the Union (#SOTU) speech? Thoughts? How's that working for you? It's campaign 2012 in all its glory.
Obama envisions an America "Where everyone gets a fair shot..." Did I miss something? Once again - he lays out a vague plan: wants the wealthy to play by the same rules. Ok - I hear you, but guess what Mr. President - the wealthy PLAY by the rules in the book - the playbook that Congress/Lobbyists/Legislators (you included) created. The wealthy are NOT doing anything illegal so stop pandering and say it for what it is.
If you want to make it fair - then you have to throw out the tax code and start from scratch: Throw out the lobbyists and special interests and do something dramatic - LEAD the country. Do not make it sound as if one segment of the country is behaving illegally. They are not and Mitt Romney has to stand up and set the record straight.
Speaking of behaving illegally - did he say last night that he wants to BAN INSIDER TRADING for members of Congress? What a novel idea...
FOMC began the 2 day meeting yesterday, and with little guidance - stocks once again hung in the balance as the European discussions continue. It seems that the 50% haircut negotiated last October is not enough.
Really?
70% seems to be the new number but that's not working as the private investors are not willing to go there. Help me out - when you invest - there is this thing called Risk/Reward - right? Investing is risky; the players know that - so guess what? Cut the BS!! It won't be pretty but it is the way of the world. Everyone wants to be protected while at the same time they want to make a killing.
You cannot have it both ways. Either you invest and assume the position or you put your money in treasuries. If there is not risk then there should not be a reward. It is investing 101. The only question is - how orderly or disorderly will it be?
Today we will hear from the FED a couple of times - at 12:30 we get the rate decision - then around 2 ish we get Uncle Benny to answer a few questions and then around 4 we will get an interest rate forecast.
The Fed has already stated that interest rates will be kept low for an extended duration, so what are we looking for? Can you say QE3? The hunt is on. The text will instantly be scanned for any hint of stimulus in any of the multiple forms it might take and when Benny is interviewed you can be sure that the reporters will be lined up to ask about QE3 - not once or twice - but over and over again.
On the other hand, if he is concerned about the pace of the recovery and leaves open the door for additional stimulus, then stocks will find their footing and begin the trek forward.
Today we get a slew of eco reports - Mort Apps, Pending Home sales and the FED decision along with a monster day of earnings.
In Asia - most mkts continue to be closed for the holiday: Japan +1.2% and ASX +1.1%. Apple earnings are good news for the Asian economies, but with most mkts closed it is hard to get an honest read.
In Europe - mkts all lower right now as a batch of disappointing earnings and rising bond yields in some of the peripheral countries put pressure on the mkts. Declines in financials - mostly French and UK banks are leading mkts into negative territory. FTSE -0.6%, DAX -0.6%, CAC 40 -1%, Eurostoxx -1.1%.
Futures on the S&P are now lower by 4 pts, trending at 1307. We remain in purgatory - not knowing which way to go, 1325 remains resistance - while 1300 seems to be support - as we bounced off of it yesterday and held.
Expect the mkt to reward or punish individual companies as they report while all eyes remain focused on Benny...will he disappoint?
Take good care -
KP
In honor of Apple - we are making Apple Fritters today.....You can eat these for breakfast or have them as a desert....either way - It's all about Apples!
For a dish like this you need measurements as you are creating a batter to dip the apples in...so this one is more specific.....1 c flour, 1/4 c sugar, 1 tbsp baking powder, 1 tsp salt, 2 eggs, 1/2 c milk, oil , 2 or 3 apples (peeled, cored and sliced in rings) and confectionary sugar.....You can also add in cinnamon or nutmeg if you like...
Mix together the dry ingredients, in another bowl beat the eggs and add the milk - now blend with the dry ingredients.
In a deep fryer - heat some oil - enough that will allow you to "deep fry" the slices.
Dip the apple slices in the batter and then deep fry until golden brown. Remove and place on paper towels to drain - when cooled - "dust" with confectionary sugar. Arrange on a platter and serve. If you use as a desert - place the fritter on the plate and top with your favorite ice cream. I am traditional - so Vanilla always works best.
Enjoy
